Explain the problem of 'For whom …

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Explain the problem of 'For whom to produce' in brief...

Posted by H!Mαη$Hμ Ұαδαυ ✔️ 6 years, 11 months ago

CBSE > Class 12 > Economics

3 answers

Harvinder Ahlawat 6 years, 11 months ago

Our economy are two sections : richer section ,poor sections . If goods are produced for poor sections , the profits of the producers low ,low profits means low investment ,low investment mean low Gdp growth . So the producers are produce for rich section that maximize profits . High profit means people are ready to invest .And GDP grows☺☺☺

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Tanaya Mandal 6 years, 11 months ago

This problem refers to selection of category of people who will ultimately consume the goods, that is weather to produce goods for more poor and less rich or more rich and less poor.

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Princi Singh 6 years, 11 months ago

The solution of this problem is very simple commodity can be consumed only by people who have more purchasing power. Price mechanism determines the income of the workers, i.e.; purchasing power. The purchasing power of the owner of capital is determined in the same way. Thus, when the price of every commodity and every factor of production are determined, the third problem will be solved.

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